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Thu, 16 Apr 2026

Thu, 16 Apr 2026 Japan pledges $10bn to help Asian countries deal with oil crisis

The aid is roughly equivalent to a year's worth of crude oil imports by Asean countries.
Japan has announced a $10 billion aid package to help its Asian neighbors, particularly those in Southeast Asia, secure energy supplies amid disruptions caused by the Iran war. The Japanese government relies on South East Asia for petroleum-derived products, including medical equipment. To address the region's vulnerability to energy supply disruptions, Japan will provide financial aid to help countries procure crude oil and maintain supply chains. The aid package is equivalent to a year's worth of crude oil imports by countries in the Association of Southeast Asian Nations (ASEAN). Funding for the project will come from various sources, including state-backed institutions and international organizations such as the Asian Development Bank. Japanese Prime Minister Sanae Takaichi assured that the initiative would not negatively affect Japan's domestic oil supplies. However, concerns remain about a shortage of naphtha, a key raw ingredient in plastics, which could further strain the country's healthcare system. The Philippines has declared a national energy emergency, and governments across Southeast Asia are urging people to conserve energy by carpooling and reducing air-conditioning use. At an online summit hosted by Japan, Philippine President Ferdinand Marcos Jr called for the activation of ASEAN's fuel-sharing pact, highlighting that no single country can insulate itself from supply chain shocks. The aid package is part of a larger effort to mitigate the impact of the Iran war on energy supplies in Asia.